3Q2016 Financial Results Presentation 26 October Pioneer Crescent

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1 3Q2016 Financial Results Presentation 26 October Pioneer Crescent

2 Content Executive Summary Real Estate Highlights Financial & Capital Management Highlights Appendix 2

3 3Q2016 Executive Summary Active Portfolio Management Proactive asset management Weighted Average Lease Expiry remains steady at 3.8 years (by rental income) Tenant retention rate of 86.7 % achieved in a challenging operating environment Healthy portfolio occupancy Portfolio occupancy has increased marginally by 0.2% to 93.6 % 1 Stable Performance and Prudent Capital Management DPU achieved cents for YTD3Q16 YTD3Q16 down 3.3 % as compared to adjusted DPU for YTD3Q15 Quality of earnings improving due to no capital distribution and 100% payment of management fees in cash 104% of net income paid out in YTD3Q16 compared to 116% for YTD 3Q15 Completed the refinancing of the S$100 million term loan facility 100% of CIT s investment properties are now fully unencumbered following this refinancing No major refinancing until 2H % of interest rates fixed for the next 3.2 years 1 Excluding 2 Ubi View that is in process of divestment 3

4 3Q2016 Financial Summary 3Q2016 (S$ million) 3Q2015 (S$ million) YoY (%) Adjusted 3Q2015 (S$ million) (1) Adjusted YoY (%) Gross Revenue (2) Net Property Income (3) Net Income Net effect of non-taxable items (4) Amount available for distribution (5) Distribution Per Unit ( DPU ) (cents) Annualised DPU (cents) (1) 3Q2015 results adjusted to reflect management fees wholly paid in cash and no capital distribution for a like-for-like comparison to 3Q2016 (2) Includes straight line rent adjustment of S$0.4 million (3Q2015: S$0.5 million) (3) Lower net property income mainly due to higher operating expenses of properties converted from single-tenanted property to multi-tenancy offset by revenue contribution from leasing up and rental escalations of several properties. (4) Non-taxable items for 3Q2016 less than one million in value. (5) 100% of management fees paid in cash in 3Q2016 compared to 50% cash/50% units in 3Q2015 4

5 YTD3Q2016 Financial Summary YTD 3Q2016 (S$ million) YTD 3Q2015 (S$ million) YoY (%) Adjusted YTD 3Q2015 (S$ million) (1) Adjusted YoY (%) Gross Revenue (2) Net Property Income (3) Net Income Net effect of non-taxable items Distribution from capital Amount available for distribution (4) Distribution Per Unit ( DPU ) (cents) Annualised DPU (cents) (1) YTD3Q2015 results adjusted to reflect management fees wholly paid in cash and no capital distribution for a like-for-like comparison to YTD3Q2016 (2) Includes straight line rent adjustment of S$1.3 million (YTD3Q2015: S$1.7 million) (3) Lower net property income due to higher operating expenses of properties converted from single-tenanted property to multi-tenancy offset by revenue contribution from acquisitions in the prior year, leasing up and rental escalations of several properties. (4) 100% of management fees paid in cash in YTD3Q2016 compared to 50% cash/50% units and capital distribution in YTD3Q2015 5

6 Real Estate Highlights 160A Gul Circle 6

7 Proactive Lease Management Weighted Average Lease Expiry (WALE) at 3.8 years Renewed and secured approximately 1,194,507 sq ft of leases in YTD 3Q16 Tenant retention rate of 86.7 % Portfolio occupancy at 93.6 % 1 1 Excluding 2 Ubi View that is expected to be divested in 4Q % 25.0% 20.0% 2.8% 15.0% 17.0% 12.5% 10.0% The property will be undergoing AEI 17.0% 7.0% 16.8% 5.0% 0.0% 7.3% 7.7% 8.1% 1.2% (6 properties) 2.1% 0.5% Single-Tenanted Multi-Tenanted As at 30 September 2016 By Rental Income 7

8 Divestment Proposed Divestment of 2 Ubi View Sale Consideration S$10.5 million Description A 5-storey light industrial building Land Tenure ~ 42 years balance Gross Floor Area 43,654 sq ft Completion Date Target end October

9 Financial and Capital Management Highlights 21B Senoko Loop 9

10 Balance Sheet Summary As at 30 September 2016 (S$ million) Investment Properties 1,405.2 Total Assets 1,426.3 Total Borrowings (net of loan transaction costs) Net assets attributable to Unitholders No. of Units Issued (million) 1,304.4 NAV Per Unit (cents) 66.9 Gearing Ratio (%)

11 Key Capital Management Indicators 88.4% of interest rates fixed for the next 3.2 years Unencumbered investment properties valued in excess of S$1.4 billion As at 30 September 2016 (S$ million) Total Debt (S$ million) Gearing Ratio (%) 36.9 All-in Cost (%) p.a Weighted Average Debt Expiry (years) 3.4 Interest Coverage Ratio 3.6 Interest Rate Exposure Fixed (%) 88.4 Proportion of Unencumbered Investment Properties (%) 100% Available Committed Facilities (S$ million)

12 S$ Mil Diversified Debt Maturity Profile Well-staggered debt maturity profile, with no refinancing due till 2H2018 Available RCF of S$89m provides CIT with financial flexibility Weighted Average Debt Expiry lengthened to 3.4 years MTNs Unsecured Term Loan 12

13 Distribution Timetable Distribution Details Distribution Period 1 July 2016 to 30 September 2016 Distribution Rate cents per unit from taxable income Distribution Timetable Last Trading Day on a Cum Distribution Basis 31 October 2016 Distribution Ex-date 1 November 2016 Books Closure Date 3 November 2016 Distribution Payment Date 30 November

14 Appendix 3 Pioneer 3 Pioneer Sector Sector

15 Overview of CIT IPO in July 2006 Current Market Cap ~S$717 million 50 Properties ~8.4 million sq ft of GFA ~7.8 million Sq ft of NLA S$1.4 billion Property Value 8.2 months of Security Deposits ~93.6% 1 Occupancy Rate 205 Tenants Changi International Airport Jurong Port Pasir Panjang Terminal Logistics General Industrial Keppel Terminal Warehouse Car Showroom & Workshop Data as at 30 September 2016 Light Industrial Business Park 1 Excluding 2 Ubi View that is in process of divestment 15

16 Diversified Portfolio Asset Class (By Valuation) Car Showroom and Workshop, 2.9% Business Park, 2.2% Logistics, 15.3% Asset Class (By Rental Income) Car Showroom and Workshop, 3.3% Business Park, 1.7% Logistics, 16.9% General Industrial, 32.7% Warehousing, 20.0% General Industrial, 30.4% Warehousing, 18.7% Light Industrial, 26.9% Light Industrial, 29.0% Single Tenanted vs Multi-Tenanted Properties (By Valuation) Single Tenanted vs Multi-Tenanted Properties (By Rental Income) Single Tenanted Properties, 43.8% Multi-Tenanted Properties, 56.2% Single Tenanted Properties, 42.5% Multi-Tenanted Properties, 57.5% 16

17 Diversified Tenant Base and Trade Sectors No individual trade sector accounts for more than 13.2% of CIT s total rental income 17

18 Quality and Diversified Tenant Base Top 10 Tenants Account for ~33.9% of Rental Income As at 30 September % 7.0% 7.1% 6.0% 5.0% 4.0% 5.2% 3.9% 3.4% 3.3% 3.0% 2.0% 2.4% 2.3% 2.2% 2.1% 2.0% 1.0% 0.0% 18

19 Portfolio Rents As at 30 September 2016 $1.60 Portfolio Rents (Based on Leased Area Per Month Per Sq Ft) $1.43 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $1.10 $1.27 $0.00 STBs MTBs TOTAL 1,194,507 sq ft renewed in 3Q YTD Rental reversion of -4.5%* *Due in large part to the expiry of the master lease and subsequent conversion to multi-tenanted building of the property at 4/6 Clementi Loop. 19

20 Portfolio Occupancy Levels by Asset Class Healthy portfolio occupancy compared to industry average As at 30 September % 90.0% 80.0% 70.0% Portfolio Occupancy 100.0% 97.6% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 97.4% 91.9% 92.6% 92.5% 93.6% 89.7% 88.2% 85.0% 72.7% CIT Portfolio Average: 93.6% 1 JTC Industrial Average: 89.4%* 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Logistics Warehousing Light Industrial General Industrial Car Showroom and Workshop Business Park TOTAL 1 Excluding 2 Ubi View that is in process of divestment *As at 2Q2016 STBs MTBs TOTAL 20

21 Interest Rate Risk Management 88.4% of interest rate exposure fixed for next 3.2 years Borrowing costs significantly insulated against interest rate increases Increase in Interest Rate Impact on All-in Cost of Debt (%) Decrease in distributable Income (S$m) Change as % of FY2015 Distribution Impact on FY2015 DPU (Cents) (1) 0.50% 3.71% % % 3.77% % % 3.82% % % 3.88% % (1) Based on number of units in issue as of 31 December

22 Important Notice This material shall be read in conjunction with CIT s results announcements for the financial period ended 30 September The value of units in CIT ( Units ) and the income derived from them may fall as well as rise. Units are not investments or deposits in, or liabilities or obligations of, Cambridge Industrial Trust Management Limited ("Manager"), RBC Investor Services Trust Singapore Limited (in its capacity as trustee of CIT) ("Trustee"), or any of their respective related corporations and affiliates (including but not limited to National Australia Bank Limited, nabinvest Capital Partners Pty Ltd, or other members of the National Australia Bank group) and their affiliates (individually and collectively "Affiliates"). An investment in Units is subject to equity investment risk, including the possible delays in repayment and loss of income or the principal amount invested. Neither CIT, the Manager, the Trustee nor any of the Affiliates guarantees the repayment of any principal amount invested, the performance of CIT, any particular rate of return from investing in CIT, or any taxation consequences of an investment in CIT. Any indication of CIT performance returns is historical and cannot be relied on as an indicator of future performance. Investors have no right to request that the Manager redeem or purchase their Units while the Units are listed. It is intended that investors may only deal in their Units through trading on Singapore Exchange Securities Trading Limited (the SGX-ST ). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units. This presentation may contain forward-looking statements that involve assumptions, risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of occupancy or property rental income, changes in operating expenses (including employee wages, benefits and training costs), governmental and public policy changes and the continued availability of financing in amounts and on terms necessary to support future CIT business. You are cautioned not to place undue reliance on these forward-looking statements, which are based on the Manager s current view of future events. This presentation is for informational purposes only and does not have regard to your specific investment objectives, financial situation or your particular needs. Any information contained in this presentation is not to be construed as investment or financial advice, and does not constitute an offer or an invitation to invest in CIT or any investment or product of or to subscribe to any services offered by the Manager, the Trustee or any of the Affiliates. 22

23 Further Information Ms. Elena Arabadjieva Cambridge Industrial Trust Management Limited 61 Robinson Road, #12-01 Tel: (65) Robinson Centre Fax: (65) Singapore